Second quarter results were in-line with previously stated expectations

DES MOINES, Iowa, Jan. 22 /PRNewswire-FirstCall/ -- Meredith Corporation
(NYSE: MDP), the leading media and marketing company serving American women,
today reported fiscal 2009 second quarter earnings per share of $0.28,
including a special charge of $0.21. Excluding the special charge, Meredith's
earnings per share were $0.49, in-line with stated expectations. Second
quarter revenues were $366 million. This compares to fiscal 2008 second
quarter earnings per share of $0.75, and revenues of $396 million.

Meredith recorded a special charge of $16 million ($10 million after tax)
in the fiscal second quarter. The charge includes the cost of a companywide
workforce reduction of approximately 250 employees; the closure of Country
Home magazine, effective with the March 2009 issue; and the relocation of the
creative functions of the ReadyMade brand and Parents.com to Des Moines.
Additional information on the special charge is available in Tables 1 and 2,
and in Meredith's press release dated January 8, 2009.

For the first six months of fiscal 2009, earnings per share were $0.69,
including the special charge. Excluding the special charge, earnings per
share were $0.90. Fiscal 2009 first-half revenues were $737 million. This
compares to fiscal 2008 first-half earnings per share of $1.43, and revenues
of $800 million.

"Advertising revenues across our businesses continue to be significantly
impacted by the recession," said Meredith President and Chief Executive
Officer Stephen M. Lacy. "However, certain revenue streams not tied to
advertising are growing, particularly our integrated marketing, brand
licensing and video production activities. Also, even in these difficult
economic times, our connection to the consumer is rock solid and
strengthening. We've seen notable gains in magazine readership and
circulation response rates for many of our national brands, as well as marked
improvement in news ratings at our local television stations."

Meredith continues to execute its performance improvement plan, which is
focused on gaining market share, growing new revenue streams and practicing
aggressive expense control. Excluding the special charge and despite higher
paper prices, total Meredith operating expenses declined 2.6 percent in the
second fiscal quarter, and were down 2.8 percent for the first six months of
fiscal 2009. Excluding acquisitions and the special charge, total company
operating expenses declined 4.0 percent in the quarter, and were down 4.5
percent for the first six months of fiscal 2009.

"We possess a strong balance sheet, modest levels of debt at a low cost of
funds, and adequate liquidity supported by strong operating cash flow," Lacy
said. "We are continually taking steps to strengthen our solid financial
position through disciplined expense and cash management. Our conservative
financial practices and strong national and local brands position Meredith
well for the future economic recovery."

OPERATING RESULTS

Publishing

Fiscal 2009 second quarter Publishing operating profit was $15 million.
Excluding the special charge, operating profit was $28 million, compared to
$45 million in the year-ago period. Revenues were $282 million, compared to
$309 million in the year-ago period. Advertising revenues were $122 million,
versus $153 million in the prior-year period, when advertising revenues
increased 8 percent.

For the first six months of fiscal 2009, operating profit was $48 million.
Excluding the special charge, operating profit was $61 million, compared to
$100 million in the year-ago period. Revenues were $582 million, compared to
$638 million in the year-ago period. Advertising revenues were $271 million,
versus $333 million in the prior-year period, when advertising revenues
increased 11 percent. Net advertising revenues per page rose approximately 1
percent in the first six months of fiscal 2009 compared to the prior-year
period.

Examples of Meredith's growing connection to the consumer include:
-- According to the fall 2008 Mediamark Research and Intelligence
study, readership for Meredith's major subscription magazines held
steady at a very strong 120 million. Average household incomes rose
and average reader age declined compared to the prior year study.
Meredith's two flagship brands -- Better Homes and Gardens and
Parents -- each increased readership and median household income,
while average reader age decreased for both titles.
-- Traffic on Meredith's consumer Web sites rose in the second quarter
of fiscal 2009 from the year-ago period. The number of unique
visitors rose 25 percent to nearly 16 million and page views
averaged nearly 200 million per month during the quarter. The
average time spent on the sites per visitor grew to nearly 13
minutes. The total number of videos viewed during the quarter rose
17 percent to 3.2 million.
-- Meredith now ranks in the Top 5 of online networks dedicated to
women. During the quarter, Meredith announced an investment in the
Real Girls Media Network -- a group of premium-branded online social
communities. Also, Meredith launched MixingBowl.com -- a branded
social networking site for women passionate about food and recipes.
-- Brand licensing delivered another outstanding quarter as revenues
rose 27 percent. Sales of Better Homes and Gardens-branded home
products at Walmart U.S. are meeting expectations following the
September 2008 launch of the program. Meredith and Walmart recently
reached agreement to increase the number of products to
approximately 1,000 SKUs in calendar 2009 from 550.
-- Internationally, Meredith completed multiple licensing agreements
during the quarter that will extend the Better Homes and Gardens,
Parents, More, and Diabetic Living brands to more than 20 countries,
including Italy, Mexico and Brazil.

Broadcasting

Fiscal 2009 second quarter Broadcasting operating profit was $22 million.
Excluding the special charge, operating profit was $24 million, compared to
$28 million in the year-ago period. Revenues were $84 million, compared to
$88 million in the year-ago period. Net political revenues were $17 million,
in-line with expectations, compared to $1 million in the year-ago period.

For the first six months of fiscal 2009, operating profit was $33 million.
Excluding the special charge, operating profit was $35 million, compared to
$41 million in the year-ago period. Revenues were $155 million, compared to
$162 million in the year-ago period. Net political revenues were $23 million,
in-line with expectations, compared to $3 million in the first half of fiscal
2008.

Broadcasting advertising revenues were particularly impacted by a 40
percent decline in automobile advertising -- its largest category -- during
the second quarter of fiscal 2009. "While the automotive industry is facing
unprecedented challenges, and our other advertisers are also feeling the
impact of the recession, we are encouraged that our local television brands
continue to resonate with our consumers," Lacy said. "Our investments in
local news, combined with our online, video and retransmission initiatives,
are laying an important foundation for future growth."

Meredith's television stations posted stronger ratings during the recently
completed November sweeps. Highlights included market-leading performances
for news programming in Portland, Hartford and Nashville, and a first-ever
second-place finish in late news in Atlanta. Meredith's stations in Las
Vegas, Kansas City and Greenville, SC, also had solid rating gains.

Meredith Video Solutions, the company's in-house production unit, posted
strong revenue growth in the quarter. The Better show, Meredith's nationally
syndicated lifestyle show featuring content inspired by Meredith's publishing
brands, is now available in 43 markets, representing 30 percent of the
country. Top 20 markets San Francisco, Cleveland and Denver recently cleared
the program.

Meredith recently agreed to a new retransmission agreement with Comcast --
the largest carrier of Meredith's signal with customers in eight of its 10
television markets -- and also agreed to extend its successful video on demand
(VOD) alliance with Comcast for Parents-branded video. Meredith has now
successfully completed new retransmission agreements with six of seven major
cable operators in its markets.

OTHER FINANCIAL INFORMATION

Meredith generated $83 million in cash flow from operations during the
first six months of fiscal 2009. Meredith's total debt was $455 million at
December 31, 2009, down $30 million from its prior fiscal year end, and its
weighted average interest rate was approximately 4.4 percent as of December
31, 2008. Meredith's debt-to-EBITDA ratio was a conservative 1.7 to 1, under
existing debt covenants. The company has repurchased 865,000 shares in fiscal
2009, leaving 1.5 million shares remaining under current share repurchase
authorizations.

"We are well-positioned to weather the current softness in advertising and
the turbulence in the financial markets, as well as make acquisitions and
investments when opportunities arise," Lacy said. "We have a strong balance
sheet with a low level of debt, and continue to exercise prudent cash
management."

All earnings per share figures in the text of this release are diluted.
Both basic and diluted earnings per share can be found in the attached
condensed consolidated statements of earnings.

OUTLOOK

Most of Meredith's advertising clients continue to experience a difficult
economic environment. The resulting weakness will impact Meredith's revenues
for the remainder of fiscal 2009.

While it's too early to predict an improving trend, fiscal 2009 third
quarter Publishing advertising revenues are currently down nearly 15 percent,
compared to a decline of nearly 20 percent in the first half of fiscal 2009.
Additionally, fiscal third quarter paper prices are moderating compared to the
first half. Still, paper prices are expected to be approximately 7 percent
higher than the third quarter of fiscal 2008.

Broadcasting advertising pacings are currently down nearly 40 percent,
driven by a 70 percent decline in automotive pacings.

Meredith's average tax rate is expected to be approximately 36 percent in
the third quarter, and 40 percent for the full fiscal 2009.

Currently, Meredith expects third quarter earnings per share to range from
approximately $0.55 to $0.60. Full year earnings per share are expected to
range from $2.00 to $2.25, excluding the special charge taken in the fiscal
second quarter.

A number of uncertainties remain that may affect our outlook for results
in the third quarter and full fiscal year as stated in this press release.
These include overall advertising volatility; the performance of the company's
retail businesses; and paper prices and postal rates. These and other
uncertainties are referenced below under "Safe Harbor" and in certain of the
company's SEC filings.

CONFERENCE CALL WEBCAST

Meredith will host a conference call on January 22, 2009, at 11 a.m. EST
(10 a.m. CST) to discuss fiscal second quarter results. A live webcast will be
accessible to the public on the company's web site, http://www.meredith.com,
and a replay will be available for one week after the call. A transcript will
be available within 48 hours following the conference call at
http://www.meredith.com.

RATIONALE FOR USE AND ACCESS TO NON-GAAP MEASURES

Management uses and presents GAAP and non-GAAP results to evaluate and
communicate the performance of the company. Non-GAAP measures should not be
construed as alternatives to GAAP measures. EBITDA and free cash flow are
common supplemental measures of performance used by investors and financial
analysts. Management believes that EBITDA and free cash flow provide
additional analytical tools to clarify the company's results from core
operations and delineate underlying trends. Meredith does not use EBITDA or
free cash flow as a measure of liquidity or funds available for management's
discretionary use because they include certain contractual and non-
discretionary expenditures.

Results excluding the special charge recorded in the second quarter of
fiscal 2009 are also supplemental non-GAAP financial measures. Management
believes the special charge is not reflective of Meredith's ongoing business
activities. While results excluding the special charge are not a substitute
for reported earnings results under GAAP, management believes this information
is useful as an aid in better understanding Meredith's current performance,
performance trends and financial condition. Reconciliations of non-GAAP to
GAAP measures are included in the attached tables. The attached consolidated
financial statements and reconciliation tables will be made available at
http://www.meredith.com

SAFE HARBOR

This release contains certain forward-looking statements that are subject
to risks and uncertainties. These statements are based on management's current
knowledge and estimates of factors affecting the company's operations.
Statements in this announcement that are forward-looking include, but are not
limited to, the statements regarding broadcasting pacings and publishing
advertising revenues, along with the company's earnings per share outlook for
the third quarter and all of fiscal 2009.

Actual results may differ materially from those currently anticipated.
Factors that could adversely affect future results include, but are not
limited to, downturns in national and/or local economies; a softening of the
domestic advertising market; world, national or local events that could
disrupt broadcast television; increased consolidation among major advertisers
or other events depressing the level of advertising spending; the unexpected
loss or insolvency of one or more major clients; the integration of acquired
businesses; changes in consumer reading, purchasing and/or television viewing
patterns; increases in paper, postage, printing or syndicated programming
costs; changes in television network affiliation agreements; technological
developments affecting products or methods of distribution; changes in
government regulations affecting the company's industries; unexpected changes
in interest rates; and the consequences of acquisitions and/or dispositions.
The company undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.

ABOUT MEREDITH CORPORATION

Meredith Corporation (NYSE: MDP: http://www.meredith.com ) is the leading
media and marketing company serving American women. Meredith combines well-
known national brands -- including Better Homes and Gardens, Parents, Ladies'
Home Journal, Family Circle, American Baby, Fitness and More -- with local
television brands in fast growing markets. Meredith is the industry leader in
creating content in key consumer interest areas such as home, family, health
and wellness and self-development. Meredith then uses multiple distribution
platforms -- including print, television, online, mobile and video -- to give
consumers content they desire and to deliver the messages of its marketing
partners. Additionally, Meredith uses its many assets to create powerful
custom marketing solutions for many of the nation's top brands and companies.
The goals of these programs are to increase consumer loyalty and produce
repeated consumer interaction. In the last two years, Meredith has
significantly added to its capabilities in this area through the acquisition
of cutting-edge companies in areas such as online, word-of-mouth and database
marketing. Headquartered in Des Moines, Meredith has a nationwide workforce
of approximately 3,500 employees.